Private Equity Investment in Business Services Shifts in 2026 as Exits, Refinancings and AI Reshape the Market
New SI Global 2026 report on private equity investment into business services assets finds investor appetite remains strong despite a more selective deal environment.
Private equity investment into business services remains active in 2026, but the market is entering a more selective and disciplined phase, according to the latest SI Global Private Equity Insights Report.
The new report finds that while investor appetite remains strong, new platform investments are becoming more selective. At the same time, exit activity and refinancings are increasing, and artificial intelligence is playing a growing role in how investors assess value creation opportunities.
Drawing on research across 80 private equity firms, 266 portfolio companies and 300+ platform transactions, the report combines SI Global’s proprietary market analysis with insights from leading lower and mid-market investors.
Joe Hine, Partner at SI Global and report author, said: “The market is recalibrating after several years of significant growth in the number of business services companies under private equity ownership. In a maturing market with a perceived ‘exit issue’, we are finally seeing a healthier rotation of capital through exits and refinancings. Despite the decline in new investments, the desire to invest remains high, but investors are being more disciplined about where they deploy capital.”
Key findings from SI Global’s 2026 Private Equity Insights Report
- Private equity deal volumes in business services fell 29% year-on-year
- First-time platform investments declined 48%, reducing new platform creation
- Macroeconomic conditions, complex trading environments and increased investment committee scrutiny are making deal processes longer and more intensive
- Refinancing increased 125% and exit activity improved
- Assets held for more than five years rose to 26% of the 2025 dataset
- Bolt-on M&A for investment platforms is slowing down
- Digital and tech-enabled services continued to attract a significant share of capital, accounting for almost a third of 2025 platform investments
- High-quality businesses continue to attract strong interest, particularly in the lower mid-market
- Founder-led companies with clear positioning, resilient earnings and strong management teams remain highly attractive
The rise in refinancings and exit activity reflects a healthier rotation of capital after a period of extended hold periods and growing portfolio backlogs. With ‘overdue’ investments now approaching a third of all tracked assets, up around 30% year-on-year, alternative liquidity routes are becoming increasingly important as investors manage portfolio maturity and remain selective on new platform creation.
AI is becoming central to private equity value creation
AI is also a major driver of investor interest. While AI is increasing scrutiny around margins, delivery models and defensibility, SI Global’s report finds that investors increasingly view AI as an opportunity rather than a threat when it is combined with strong leadership and a clear commercial strategy.
The report highlights that investors are not simply looking for businesses that use AI; they are looking for management teams that understand how AI will affect their market, how it can strengthen their proposition, and how it can be embedded into a credible value creation plan.
Hine added: “AI is becoming a core part of the investment case, particularly in the lower mid-market. Investors are not looking at AI in isolation, but at how it works alongside strong management teams, differentiated positioning and clear execution. For the right businesses, AI is increasingly seen as an opportunity to enhance value, not a threat to the model.”
What this means for founder-led business services companies
SI Global’s report concludes that private equity will remain active in 2026, but success will depend on preparation, selectivity and execution.
For founder-led businesses, the opportunity remains significant. Companies that can demonstrate growth, resilience, clear market positioning and a credible approach to technology and AI will continue to attract interest from private equity investors.
This is particularly true in the lower mid-market, where high-quality agencies, consultancies and technology-enabled services businesses remain attractive to investors.
The SI Global Private Equity Insights Report is available now.
About the SI Global Private Equity Insights Report
This is SI Global’s third annual Private Equity Insights Report.
The research analysed investment activity across agencies, consultancies and technology-enabled service businesses, drawing on research across 80 private equity firms, 266 portfolio companies and more than 300 platform transactions across the UK, US, Europe and APAC.
The research is supported by interviews with leading lower and mid-market investors, including Shamrock Capital Advisors, Mobeus Equity Partners, Parc Capital and BGF.
